One who intends to leave others better off for his having existed.

9/16/11

GN&R Editorial Board Shamefull Propaganda Spin on Duke and Progress Layoffs?

"...Progress Energy, headquartered in Raleigh,

...Duke Energy, which is anchored in Charlotte.

Combined, they’ll serve more than 7 million customers, including most residents and businesses in North Carolina.

Otherwise known as a monopoly?

Rate cuts aren’t likely

The deal promises benefits, such as cost savings that can be passed to consumers.

Do the last two sentences contradict each other?

If there won't be rate cuts, what are the benefits?

...Duke only promises efficiencies that can “mitigate the future rate increases we expect.”

Sometimes people mistake the way I talk
for what I am thinking.

Idi Amin

...In Duke’s current service areas, customers should watch for signs that this equalization will result in Duke rates rising to meet falling Progress rates somewhere in the middle.

Since the long-term trend for prices is up,
the equalization (good for Progress customers, bad for Duke customers),
will be hidden by higher prices for all customers.

Peter Schwarz
Professor of Economics at UNC Charlotte

Everyone should gain from this deal, or it’s not worth doing.

Is what you think others think,
what they may be thinking,
or what they and/or some others want you to think they’re thinking?

...Some anxiety is felt in Raleigh, home city for Progress Energy. While a major administrative presence is likely to remain in the state capital, that’s not the same as a headquarters.

But keeping the corporate structure in-state is still a plus by any reckoning.

How is "keeping the corporate structure in-state" a plus for the laid off workers?
.
If another doesn’t say all they mean,
do they mean all they say?

A down side to the merger, which can take a year to complete, will be a loss of jobs. Duke says it will eliminate duplicative operations but has not disclosed numbers.

“I could foresee an eventual 10-15 percent reduction in the combined work force,” UNC Charlotte economics professor Peter Schwarz, an expert on the energy industry, told the News & Record by e-mail.

The two companies employ about 30,000 workers in six states. Schwarz’s estimate would mean job cuts of 3,000 to 4,500 — not all in North Carolina.


Just mostly "duplicative operations"
located at both headquarters located in North Carolina?

4,500 mid-level jobs x about $70,000 salary = $315,000,000 lost income?

30% of $315,000,000 = $94,500,000 lost fed, state and local taxes?

If there's no new jobs, how many mortgages could default?
.
How could home prices be affected?
.
How much could property and other taxes have to increase on everyone else
to make up for the lost tax revenue?

Did the GN&R Editorial Board consider the increased taxation?

While no loss of jobs is welcome, there could be compensating benefits. Reliable, low-cost energy is attractive to businesses, Schwarz said. With Duke’s low rates, “industry should view the increased Duke coverage as a positive.”

How can there be "compensating benefits" if rates and taxes continue to rise?

Duke is an “excellent ally,” said Dan Lynch, president of the Greensboro Economic Development Alliance, because of its competitive rates and “extremely high reliability quotient ... I would think it’s going to be good for everybody,” he said of a possible merger.

Except for the fired workers and the increased taxes on everyone in North Carolina,
right Dan?

Can some promoting erroneous concepts
believe self-created illusions?

Greater resources

...Duke should continue to create incentives for customers to reduce consumption through weatherization, use of energy-efficient appliances and other advances.

Thank goodness

An energy hub

With this merger, North Carolina can become an energy hub — especially if Duke steps up its commitment to develop wind, solar and bio fuel.

The power industry can remain a large employer in North Carolina, perhaps with fewer administrative jobs, but also with a greater emphasis on research and development.

Sometimes I wonder
whether the world is being run by smart people who are putting us on,
or by imbeciles who really mean it.

Mark Twain

Some uncertainties lie ahead. The deal must meet the approval of shareholders and state and federal regulators, who should guard the interests of consumers and the public.

Why would some utility company executives
want to work at state and federal regulatory agencies
and why would some retired regulators
want to work for the companies they regulated?

If all concerns are addressed, this Duke power surge might benefit customers and energize North Carolina."

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